A sum of Rs16 000 invested at compound interest amounts to a Rs21 160 in two years What is the rate ...........

Quantitative Aptitude (MTS) Compound Interest

A sum of Rs16,000 invested at compound interest, amounts to a Rs21.160 in two years. What is the rate per cent per annum?

This questions was previously asked in

SSC MTS 18th October 2021 Shift-3

16.5

17.5

- Given: Principal (P) = Rs 16,000; Amount after 2 years (A) = Rs 21,160; Time (n) = 2 years

- Formula for compound interest: A = P(1 + r/100)^n

- Plugging values: 21160 = 16000(1 + r/100)^2

- (1 + r/100)^2 = 21160/16000 = 1.3225

- Take square root: 1 + r/100 = v1.3225 = 1.15

- Thus, r/100 = 1.15 - 1 = 0.15

- Rate (r) = 0.15 × 100 = 15% per annum

- Options:

- Option 1: 16.5 — Incorrect

- Option 2: 17.5 — Incorrect

- Option 3: 15 — Correct

- Option 4: 10 — Incorrect

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